The US dollar edged lower on Wednesday, July 8, as investors weighed hopes for a quick economic recovery against concerns about resurgence in the coronavirus pandemic, particularly in the US.
Three-month LME aluminium scaled the highest level in four months, topping US$ 1,670 per tonne, before it pared some gains and closed the day higher at US$ 1,665 per tonne.
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As of Wednesday, July 8, LME aluminium cash (bid) price and LME official settlement price jumped from US$ 1596.5 per tonne to US$ 1619 per tonne. 3-months bid price and 3-months offer price stood at US$ 1651 per tonne, significantly up by US$ 21 per tonne from US$ 1630 per tonne on the previous day. Dec 21 bid price and Dec 21 offer price came in at US$ 1743 per tonne compared to US$ 1726 per tonne.
The LME aluminium opening stock continued to decrease from 1618025 tonnes to 1613050 tonnes. Live Warrants hovered at 1372775 tonnes, while Cancelled Warrants 240275 tonnes.
LME aluminium 3-months Asian Reference Price stood at US$ 1640.55 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE rebounded at US$ 2062 per tonne on Thursday, July 9, following a drop from US$ 2052 per tonne to US$ 2033 per tonne on July 8.
The most-liquid SHFE August contract rebounded and regained losses from the previous day, ending 0.25 per cent higher on the day at RMB 14,150 per tonne, buoyed by bullish positions. Optimist prospects for prices may keep the contract robust tonight.
The most-liquid SHFE August contract continued to move higher, ending at RMB 14,160 per tonne following a session high of RMB 14,240 per tonne. Prospects for near-term aluminium prices were positive on the back of higher costs of raw materials. The inflow of seaborne aluminium ingot may halt the decline in domestic inventories. SMM expects the SHFE contract to hover at RMB 14,000-14,300 per tonne today with LME aluminium at US$ 1,640-1,680 per tonne.
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